Orvana posts US$2.22mn profit in Q1

Toronto-based Orvana Minerals (TSX: ORV) posted net income of US$2.22mn for the first three months of 2005, 83% higher than same-quarter 2004 thanks to higher sales volumes and prices, the company said in a statement. Revenue generated from gold sales from its Don Mario mine in eastern Bolivia topped US$6.77mn from January-March 2005, Orvana's second fiscal quarter, 44.3% up on same period 2004, the statement said. Production at open-pit and underground Don Mario, which started operations in July, 2003 rose 48.7% to 17,345oz year-on-year as Orvana continues to develop underground mining and improve head grades and recoveries. The company held cash and cash equivalents of US$10.1mn at end-March 2005 compared to US$2.05mn at end-March 2004, and reduced its long-term debt from US$15.5mn to US$11.7mn over the same two periods. Bolivia's largest mining company Comsur owns 50% plus one share of Orvana Minerals, which it acquired in return for financing Don Mario's capital costs.